Eagle Pass Water Works System Board approves to re-assign disputed water rights to Dos Republicas Coal Partnership

By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.

The Eagle Pass Water Works and Sewer System (EPWWS) Board of Trustees approved in a split 4-1 vote to re-assign or return the disputed 176 Acres feet of Rio Grande River water rights to Dos Republicas Coal Partnership at a regular meeting on Tuesday, November 18, 2014, held at Conference Room of the EPWWS Building, located at 2107 N. Veterans Boulevard, in Eagle Pass, Texas.

The EPWWS Board of Trustees action brings to closure the long-disputed legal issue between the City of Eagle Pass and Dos Republicas Coal Partnership regarding the ownership of 176 Acres feet of Rio Grande River water rights and obligations of both parties under a 2002 agreement.

In 2002, the EPWWS under the leadership of former General Manager and current Water Consultant, Roberto Gonzalez, entered into an agreement with Dos Republicas Coal Partnership, or one of its predecessors, to supply Dos Republicas’ Eagle Pass Mine with City of Eagle Pass water for 10 years to be used in the proposed open surface coal mine in exchange for Dos Republicas assigning the water rights to 176 acres feet of Rio Grande River water to the City of Eagle Pass.

The 2002 agreement between EPWWS and Dos Republicas Coal Partnership lapsed in 2012 and was not renewed. During the 2012 and 2013 Railroad Commission of Texas public hearings regarding the permit to design, build, and operate the controversial Eagle Pass Mine, the City of Eagle Pass argued that the 2002 agreement had lapsed and expired. The City of Eagle Pass argued that Dos Republicas Coal Partnership’s application for the Eagle Pass Mine be denied due to lack of a viable and sufficient water rights to operate the disputed Eagle Pass Mine.

The issue being debated between Dos Republicas Coal Partnership and the EPWWS was whether these 176 acres feet of Rio Grande River water rights revert back to Dos Republicas since the 2002 agreement lapsed between the parties or does the EPWWS now own these 176 acre feet of water or has the option to purchase these 176 acre feet of water rights. Both Dos Republicas Coal Partnership and the EPWWS retained legal counsel to advise them what their legal rights are under the 2002 agreement.

.During the Citizens Communication part of the agenda, George Baxter, Vice-President of the Maverick County Environmental and Public Health Association, and Rudy Rodriguez, Public Relations Director of Dos Republicas Coal Partnership, addressed the EPWWS Board of Trustees.

The EPWWS Board of Trustees went into Executive Session to consult with their General Counsel to discuss the 2002 agreement and the 176 acres feet of Rio Grande River water rights legal issue.

After a lengthy Executive Session, EPWWS Board Chairperson Hugo Zapata reconvened the Board in Open Session and called if any Board member had any motions to be considered regarding the 2002 Agreement and the 176 Acres feet of Rio Grande River water rights

Trustee Larry Martin made a motion: “Mr. Chairman, I motion under Agenda Item No.6 executive session pursuant to Section 551.071, Chapter 551, Texas Government Code, consultation with legal counsel regarding legal issues involving the water rights transfer agreement and assignment based on the 2002 water supply agreement between the City of Eagle Pass and Dos Republicas that the Board authorize legal counsel and administration to execute an agreement re-assigning water rights originally transferred to Eagle Pass Water Works under the 2002 water supply agreement.”

Board Trustee Dr. Claudia Rodriguez-Wright seconded Martin’s motion.

During discussion, Board Chairman Zapata stated: “This decision made by this board does not represent the position of the board on the mines. It is solely based on the 2002 water supply agreement and its contents.”

Eagle Pass Mayor Ramsey English Cantu stated: “As this discussion has taken place throughout the past couple of months, I think that it has been a very difficult decision for this Board at hand to make a decision like this. And also to consider all the facts that have been presented by legal counsel. As Mayor and as a member of this Board by charter to seat here and to represent the citizens , the interest of the citizens and the system because at the end of the day the system ultimately belongs to the taxpayers and to those individuals who receive service from it. This of course is a decision if the majority of the board wishes to move forward with, is something that I as Mayor cannot support this motion.”

EPWWS Board Trustees approved the motion in a split 4-1 vote with Trustees Larry Martin, Dr. Claudia Rodriguez-Wright, Hugo Zapata, and Jose C. Rodriguez voting in favor while Mayor Ramsey English Cantu voted against.

EPWWS General Manager Jorge Barrera issued a press release shortly after the meeting noting that the Board’s decision does not reflect its position on the Dos Republicas open surface coal mines, but rather solely on the 2002 Agreement between the parties.